Routes to Propylene

97/98S3 February 2000

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TABLE OF CONTENTS Page

I EXECUTIVE SUMMARY A. INTRODUCTION B. SECONDARY PROPYLENE PRODUCTION TECHNOLOGIES 1. Olefin Metathesis 2. Selective C4/C5 Cracking C. ECONOMICS D. GLOBAL SUPPLY/DEMAND OUTLOOK 1. Demand 2. Supply 3. Supply/Demand and Trade Balance CONVENTIONAL TECHNOLOGY A. STEAM CRACKER COPRODUCT B. RECOVERY FROM REFINERY STREAMS 1. Introduction 2. Process Design C. PROPANE DEHYDROGENATION 1. Introduction 2. Chemistry 3. Process Design (a) UOP Oleflex Process (b) Lummus Catofin Process (c) Linde PDH Process (with BASF) (d) Snamprogetti/Yarsintez FBD Process (e) Phillips STAR Process (Krupp Uhde) SECONDARY PROPYLENE PRODUCTION TECHNOLOGY A. OLEFIN METATHESIS 1. Introduction 2. Chemistry 3. Process Design (a) Lummus Olefin Conversion Technology (b) IFP-CPC Meta-4 Technology 1 1 2 2 5 7 9 9 10 11 12 12 14 14 16 18 18 19 21 21 28 31 32 36 40 40 40 42 47 48 53

II

III

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B. PROPYLENE VIA SELECTIVE C4/C5 CRACKING 1. Introduction 2. Chemistry 3. Process Design (a) Mobil Olefin Interconversion (MOI) Technology (b) KBR SUPERFLEXSM Technology DEEP CATALYTIC CRACKING (DCC) PROCESS 1. Introduction 2. Catalysts and Operating Conditions 3. Process Design 57 57 58 59 60 63 65 65 66 69 74 74 74 75 75 77 80 80 80 81 82 89 94 99 102 102 102 103 104

C.

IV

ECONOMIC ANALYSIS A. PRICING BASIS 1. Raw Materials and Utilities 2. Capital Costs B. RECOVERY FROM REFINERY STREAMS C. PROPANE DEHYDROGENATION D. SECONDARY PROPYLENE PRODUCTION TECHNOLOGIES 1. Base Case and Analysis Methodology (a) Analysis Methodology (b) Base Case 2. Olefin Metathesis 3. Selective C4/C5 Cracking 4. Comparison of Olefin Metathesis versus Selective C4/C5 Cracking E. OVERVIEW PROCESS SELECTION CRITERIA COMMERCIAL STATUS A. GLOBAL 1. Demand 2. Supply 3. Supply/Demand and Trade Balance

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TABLE OF CONTENTS (Continued) Page

B. UNITED STATES 1. Demand 2. Supply (a) Production Capability (b) Steam Cracker Propylene Production (c) Refinery Propylene Production 3. Supply/Demand and Trade Balance WESTERN EUROPE 1. Demand 2. Supply (a) Steam Cracker Propylene Production (b) Refinery Propylene Production (c) Propane Dehydrogenation Propylene Production (d) Metathesis Propylene Production 3. Supply/Demand and Trade Balance JAPAN AND EAST ASIA 1. Demand 2. Supply 3. Supply/Demand and Trade Balance 105 105 107 107 114 115 115 117 117 120 123 124 125 126 126 127 127 131 133 135 136 141

C.

D.

REFERENCES APPENDIX PERP TITLE INDEX

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TABLES Page
Table I.B.1 Table I.B.2 Table I.C.1 Table I.C.2 Table I.D.1 Table I.D.2 Table I.D.3 Table II.A.1 Table II.A.2 Table II.B.1 Table II.B.2 Table II.C.1 Table II.C.2 Table II.C.3 Table II.C.4 Table III.A.1 Table III.A.2 Table III.A.3 Table III.A.4 Table III.A.5 Table III.A.6 Table III.B.1 Table III.B.2 Table III.C.1 Table III.C.2 Table III.C.3 Table III.C.4 Table III.C.5 Table III.C.6 Metathesis Process Characteristics Selective C4/C5 Cracking Technology Process Characteristics Comparative Economics of Secondary Propylene Processes Secondary Propylene Process Selection Matrix Global Propylene Consumption Global Propylene Capacity Global Propylene Supply/Demand Balance Chemical Grade Propylene Yield from Representative Cracker Feedstocks Impact of Feedstock and Flexibility on Investment Cost Propylene Product Specifications Fractionation Column Design Parameters for Chemical and Polymer Grade Propylene Propane Dehydrogenation Capacity, 1997/98 Propane Dehydrogenation Process Characteristics Propane Dehydrogenation Material Balance STAR Dehydrogenation Process Conditions Maximizing Ethylene and Propylene with Metathesis Metathesis Process Characteristics Representative C4 Stream Compositions Material Balance Comparison for Steam Cracker and Steam Cracker with Lummus OCU Material Balance for Lummus Olefins Conversion Unit Material Balance for the IFP Metathesis Process Selective C4/C5 Cracking Technology Process Characteristics Representative C5 Stream Compositions DCC Capacity, 1997/98 DCC Product Slate and Olefin Yield DCC Type 1 and FCC Design Operating Conditions DCC Feed Analysis at TPI Operating Conditions at TPI Pilot Plant and Commercial Plant Data for TPI 4 6 7 8 9 11 11

12 14 15 16 18 22 27 38 41 47 48 50 51 57 59 60 66 67 68 72 72 73

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TABLES (Continued) Page

Table IV.A.1 Table IV.A.2 Table IV.B.1 Table IV.C.1 Table IV.D.1 Raw Material and Byproduct Prices Utility Prices and Labor Rates Cost of Production Estimate for: Polymer Grade Propylene Process: Refinery Propylene Fractionation Cost of Production Estimate for: Polymer Grade Propylene Process: Oleflex Propane Dehydrogenation Cost of Production Estimate for: Ethylene with Selective Hydrogenation of Butadiene Process: Light Naphtha Cracker (Moderate Severity) Cost of Production Estimate for: Ethylene with Selective Hydrogenation of Butadiene and Metathesis Process: Light Naphtha Cracker (Moderate Severity) + Lummus Metathesis ROI of Base Cracker with Olefin Metathesis and on an Incremental Basis Cost of Production Estimate for: Ethylene with Selective Hydrogenation of Butadiene and Superflex Process: Light Naphtha Cracker (Moderate Severity) + Superflex ROI of Base Cracker with Selective C4/C5 Cracking and on an Incremental Basis Material Balance Summary Cracker Feed of 5.3 Billion Pounds per Year Naphtha Comparative Economics of Secondary Propylene processes Secondary Propylene Process Selection Matrix Global Propylene Consumption Global Propylene Capacity Global Propylene Supply/Demand Balance U.S. Propylene Consumption by Derivative U.S. Propylene Consumption by Derivative U.S. Propylene Production Capability U.S. Propylene Production Capability 74 75 76 78

84

Table IV.D.2

86 88

Table IV.D.3 Table IV.D.4

92 93 94 100 101

Table IV.D.5 Table IV.D.6 Table IV.E.1 Table IV.E.2 Table V.A.1 Table V.A.2 Table V.A.3 Table V.B.1 Table V.B.2 Table V.B.3 Table V.B.4

102 104 104 105 106 109-111 112-114

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TABLES (Continued) Page

Table V.B.5 Table V.B.6 Table V.B.7 Table V.B.8 Table V.C.1 Table V.C.2 Table V.C.3 Table V.C.4 Table V.C.5 Table V.D.1 Table V.D.2 Table V.D.3 Table V.D.4 Table V.D.5 Table V.D.6 U.S. Propylene Supply/Demand and Trade Balance U.S. Propylene Supply/Demand and Trade Balance U.S. Propylene Supply and Demand U.S. Propylene Supply and Demand West European Propylene Consumption by Country, 1998 West European Propylene Consumption by Derivative West European Propylene Production by Capability West European Propylene Supply/Demand and Trade Balance West European Propylene Supply and Demand Japanese Propylene Consumption by Derivative East Asian Propylene Consumption by Country Japanese Propylene Production Capability East Asian Propylene Production Capability Japanese Propylene Supply/Demand and Trade Balance East Asian Propylene Supply/Demand and Trade Balance 116 116 117 117 118 119 121-123 126 127 128 130 132 133 133 134

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FIGURES Page
Figure I.D.1 Figure II.B.1 Figure II.C.1 Figure II.C.2 Figure II.C.3 Figure II.C.4 Figure II.C.5 Figure II.C.6 Figure II.C.7 Figure III.A.1 Figure III.A.2 Figure III.A.3 Figure III.B.1 Figure III.B.2 Figure III.C.1 Figure IV.B.1 Figure IV.C.1 Figure IV.C.2 Figure IV.D.1 Figure IV.D.2 Figure IV.D.3 Figure IV.D.4 Figure IV.D.5 Figure IV.D.6 Global Propylene Consumption by Region Refinery Propylene Upgrading Process Flow Diagram Paraffin Dehydrogenation Thermodynamic Conversion at 1.0 Bara Oleflex Propane Dehydrogenation Simplified Flow Diagram Oleflex Catalyst Regeneration Simplified Flow Diagram Catofin Propane Dehydrogenation Simplified Flow Diagram Linde/BASF Propane Dehydrogenation Simplified Flow Diagram Snamprogetti/Yarsintez FBD Propane Dehydrogenation Simplified Flow Diagram Phillips' Star Propane Dehydrogenation Simplified Flow Diagram Steam Cracker Integrated with Enhanced Propylene Production Unit Simplified Flow Diagram for Propylene via Metathesis (Lummus) Simplified Flow Diagram for Propylene via Metathesis (IFP) Simplified Flow Diagram for Mobil Olefin Interconversion (MOI) Simplified Flow Diagram for KBR - Superflex DCC Simplified Process Flow Diagram Polymer Grade Propylene Premiums Relative to Refinery Grade Propylene Sensitivity of Propylene Cost via Propane Dehydrogenation to Propane Price Polymer Grade Propylene Premiums Relative to Propane Material Balance for Base Cracker Material Balance for Cracker with Metathesis Material Balance for Cracker with MOI Material Balance for Cracker with Superflex Sensitivity of Olefin Metathesis and Selective C4/C5 Cracking Economics on P/E Price Ratio Historical Ethylene and Propylene Pricing 10 17 20 23 26 30 33 35 37

43 52 56 62 64 70

77 79 80 83 85 90 91 96 97

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FIGURES (Continued) Page

Figure IV.D.7 Figure IV.D.8 Figure IV.D.9 Figure V.A.1 Figure V.B.1 Figure V.C.1 Figure V.D.1 Figure V.D.2

West European Historical Ethylene and Propylene Pricing Korean (Ulsan) Historical Ethylene and Propylene Pricing Historical P/E Ratio Global Propylene Consumption by Region U.S. Propylene Consumption by Derivative West European Propylene Consumption by Derivative Japanese Propylene Consumption by Derivative East Asian Propylene Consumption by Country

97 98 98 103 107 120 129 130

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